Euromax Resources Ltd. · TSXV:EOX
Euromax Resources — Investor Presentation (March 2017)
21 slides from Euromax Resources's investor presentation, Mar 20, 2017
Slide 1: Creating and Delivering Value
© Euromax Creating and Delivering Value TSX: EOX www.euromaxresources.com
Slide 2: Disclaimer
2 Disclaimer This presentation contains statements that are forward-looking, such as those relating to results of operations and financial condition, capital spending, financing sources, commodity prices, mineral resources and property evaluation plans and programmes. Forward-looking statements are
Slide 3: The Euromax Proposition
3 Introducing the Ilovica-Shtuka Gold-Copper project in Macedonia The Euromax Proposition Simplicity Simple Geology, Simple Mining, Simple processing, Simple Logistics = AISC US$372/oz ___________________________________________________________ Longevity 20+ year Mine Life = cyclical Gold & Copper e
Slide 4: Project Location
4 Project Location Logistics Rosia Montana (Gabriel Resources) Certej (Eldorado Gold) Bor Timok (Nevsun Resources) Europe North America Chelopech (Dundee Precious Metals) Africa Skouries (Eldorado Gold) Ilovica - Shtuka (Euromax) South America
Slide 5: Mining in Macedonia
5 Mining in Macedonia LUKE – Kriva Palanka Lead, Zinc, Gold, Silver and Copper MINSTROY HOLDING TORANICA – Kriva Palanka LOJANE - Lipkovo Lead, Zinc and Silver Antimony and Arsenic MINSTROY HOLDING ZLETOVO – Probishtip Lead, Zinc and Silver PLAVICA – Probishtip Kratovo SASA - MK Kamenica Gold, Lead
Slide 6: Macedonia
5 Macedonia Government & GDP USD 11 billion Tax rate 10% Public Support Population 2 million Excellent infrastructure Educated workforce Free Trade World Bank Ease agreements with EU of Doing Business 25% Unemployment and EFTA 6th EU, 12th World
Slide 7: Unlocking the Value
© Euromax RESOURCES Unlocking the Value New Management Team injects US$5 Million Cash to execute its plan to unlock the value of the . llovica-Shtuka copper-gold porphyry May 2012 Former European Goldfields Management Team assumes Board & Management control of Euromax mat UNOBULIA ILOVICA
Slide 8: Systematic Value Creation
8 Systematic Value Creation Measured & Proven & Indicated Resources Probable Reserve • Inferred Resource ✓ 256.8mt @ 198.1mt @ 0.32g/t Au (2.6Moz) 0.32g/t Au (2.01Moz) • Preliminary Economic Analysis ✓ 0.21% Cu (1.2Blb) 0.21% Cu (898.9Mlb) (AuEq 0.66 g/t) • M & I Resource ✓ AuEq 5.4Moz AuEq 4.11Moz
Slide 9: Feasibility Study – the Value Defined
9 Feasibility Study – the Value Defined Mineral Reserve Pre-tax NPV(5%) US$ 513m IRR: 19.8% - 2.01 Million oz Gold Post-tax NPV(5%) US$ 440m - 898.9 Million lbs Copper IRR: 17.8% MINE LIFE 20+ YRS AVG ANNUAL 83,000oz Au & 16,000t Cu (AuEq 167,000 oz) PRODUCTION Conc & Dore – Aurubis Offtake INITIAL
Slide 10: Initial Capex Summary
10 Initial Capex Summary Initial Capex Breakdown (US$m) Initial Capex Opportunities Mining & Fleet $75.2 • MOU with EPC Contractor agreed - 2 stage process: Open Book to Guaranteed Maximum Price; Lump Processing Plant $199.6 Sum Turn Key EPC Contract. Owner’s Costs $33.2 • Received 3 bids appetite f
Slide 11: Simple Geology
11 Simple Geology • Resource drilling completed to nominal Measured and Indicated Fresh Mineral Resource Based upon a Dollar Equivalent cut-off of US$16/t 50m spacing Grade Contained Metal Classification Tonnage (Mt) Au Cu Au Cu (g/t) (%) (Moz) • A total of 42,032m have been drilled
Slide 12: Simple Mining
12 Simple Mining Proven and Probable Reserves • Strip Ratio 1:1 – open pit Grade Contained Metal Classification Tonnage Au Cu Au Cu • Conventional drilling and blasting together (g/t) (%) (Moz) (Mlb) with shovel and trucks supported by a fleet Probable 112.6 0.30 0.19 0.84 355.0 of ancillary equipme
Slide 13: Simple Processing
13 Simple Processing • 10Mt pa throughput • Primary gyratory in pit crusher with conveyor from pit to plant • SAG mill with two ball mills • Bulk flotation - produces clean concentrate of 24% Cu & 24g/t Au • CIL on scavenger tails to on-site doré
Slide 14: Simple Logistics
14 Simple Logistics • Road Transportation (A3 Motorway) directly to the Pirdop smelter at costs of US$26.4 per tonne of concentrate • 60,000 – 100,000 tpa concentrate production using 30t trucks • 300km / 4-5 hour Journey time
Slide 15: A Wealth of Experience
15 A Wealth of Experience Steve Sharpe, President & CEO Tim Morgan-Wynne, Non-Executive Director • +30 years in investment banking, focused on the mining sector in • Previously CFO at European Goldfields and Director of Europe & The Americas. Resources and Energy Group at HSBC Bank plc. • Senior man
Slide 16: Next Steps
16 Next Steps Technical Development – Expected Completion end of Q2 2017 • Incorporate Ag into Resource • Initiate stage 1 of EPC Process – Guarantee Maximum Price • Complete Mining Contract negotiation • Issue Optimised Technical Report – June 2017 Permitting – Expected completion Q3 2017 • Int
Slide 17: Cashflow Profile – Returning The Value
17 Cashflow Profile – Returning The Value Production Years 1-5 6-10 11-23 Au (oz/yr) 103,000 90,800 67,700 Avg Annual Cu (t/yr) 20,800 16,800 13,300 Production Total AuEq (oz/yr) 212,000 179,800 137,700 Cash Flows by Period (Au US$ 1220 /oz, Cu US$ 2.90 /lb) Years 1-5 6-10 11-23 Average Annual $112
Slide 18: Value Gap: TSX Listed and Construction Ready
18 Value Gap: TSX Listed and Construction Ready Market Capitalization (MC) C$79M or US$59M Operating Cash Flow (OCF) US$98M average, Yr 1-10 Multiple: MC / OCF = 0.6x in each of years 1-10 Production vs Cumulative Operating Cash Flow Gold Gold Equivalent Copper Operating Cash Flow 300,000 $1,200,000
Slide 19: Corporate Information
19 Corporate Information Capitalization Overview Share price against Market Vector Junior Gold Miners Index Market cap C$ 60.2 M Closing price (20 Mar 17) C$ 0.50 52 Week High C$ 0.81 52 Week Low C$ 0.21 Shares Basic 120.3 M Shares Fully Diluted 184 M Major Shareholders Holding EBRD 19.4% Richard Gr
Slide 20: Euromax: Executing on Value Creation at Ilovica-Shtuka
20 Euromax: Executing on Value Creation at Ilovica-Shtuka Simplicity Simple Geology, Simple Mining, Simple processing, Simple Logistics = AISC US$372/oz ___________________________________________________________ Longevity 20+ year Mine Life = cyclical Gold & Copper exposure ________________________
Slide 21: Contact
21 www.euromaxresources.com ` Steven L C Sharpe President & CEO [email protected] Varshan Gokool Chief Financial Officer [email protected] Pat Forward Chief Operating Officer [email protected]
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